Australian iron ore is predominantly exported and used for steelmaking internationally. However, steelmaking is an energy- and carbon-intensive heavy industry, and its electrification in the coming decades will likely disrupt the existing iron ore–steel value chains. Green steel—produced using hydrogen and electricity from renewable energy sources—presents both opportunities and challenges for Australia. Indeed, with abundant renewable energy potential and iron-ore resources, Australia could lead this global transformation. Here, we examine the interrelationships between the Australian iron-ore industry, the production of green-hydrogen from renewable energy sources, and an emergent green steelmaking process. In particular, we undertake detailed case studies to estimate current green steel production costs within two regions; the Pilbara Craton in Western Australia and the Eyre Peninsula in South Australia. While existing technology is not well suited to Australian hematite ores, our analysis highlights the site-specific competitiveness of small-scale, magnetite-fed, off-grid operations. The results underscore the advantages of a well-optimised system in decreasing hydrogen and energy storage requirements, and decreasing production costs. While our results also suggest that grid-connected projects could reduce costs through flexible operation, more work is required to understand the limitations of these conclusions. The results underscore the need to develop technologies to utilise hematite ores in green steelmaking, but also highlight the opportunity for this emerging industry to commercialise Australia’s magnetite resources. <b>Citation: </b>Wang C., Walsh S. D. C., Haynes M. W., Weng Z., Feitz A., Summerfield D., & Lutalo I., 2022. From Australian iron ore to green steel: the opportunity for technology-driven decarbonisation. In: Czarnota, K. (ed.) Exploring for the Future: Extended Abstracts, Geoscience Australia, Canberra, https://dx.doi.org/10.26186/147005

The Exploring for the Future program Virtual Roadshow was held on 7 July and 14-17 July 2020. The Minerals session of the roadshow was held on 14 July 2020 and consisted of the following presentations: Introduction - Richard Blewett Preamble - Karol Kzarnota Surface & Basins or Cover - Marie-Aude Bonnardot Crust - Kathryn Waltenberg Mantle - Marcus Haynes Zinc on the edge: New insights into sediment-hosted base metals mineral system - David Huston Scale reduction targeting for Iron-Oxide-Copper-Gold in Tennant Creek and Mt Isa - Anthony Schofield and Andrew Clark Economic Fairways and Wrap-up - Karol Czarnota

<div>Steelmaking value chains are economically important to Australia, but the need to decarbonize traditional steel-making processes could disrupt existing supply lines. Hydrogen-based iron and steel production offers one pathway for reducing the carbon intensity of steel. Here, we present maps assessing the costs of hydrogen-based direct reduction of iron oxides (to produce hot briquetted iron), optionally coupled with steelmaking in an electric arc furnace (i.e. the H2-DRI-EAF value chain). Developed as part of the Exploring for the Future program and in collaboration with Monash University, these models build off the functionality of the Green Steel Economic Fairways Mapper (beta release), with additional enhancements to the modelling algorithm to reflect constant furnace operation, the incorporation of costings to transport the produced hot briquetted iron or steel to domestic ports, and the optimisation of facility capacities. The capacity of facilities (including solar and wind generation, proton exchange membrane [PEM] electolysis, battery storage, and hydrogen storage tanks) are determined by the 1 Mtpa production target and the local availability of renewable energy resources, as modelled according to 2019 data sourced from the Renewables.Ninja (https://www.renewables.ninja/; Pfenninger & Staffell, 2016; Staffell & Pfenninger, 2016). The high-resolution (approximately 5.5 km pixels) maps reflect our preferred technology cost assumptions (see Wang et al., 2023) for the year 2025. Iron concentrate feedstocks are assumed to cost AU$150 per tonne, reflecting approximate costs for 65 % Fe pellets as derived from magnetite ores. Conversions to USD assume US$1.00 = AU$0.73.</div><div><br></div><div>Geoscience Australia's Exploring for the Future program provides precompetitive information to inform decision-making by government, community and industry on the sustainable development of Australia's mineral, energy and groundwater resources. By gathering, analysing and interpreting new and existing precompetitive geoscience data and knowledge, we are building a national picture of Australia's geology and resource potential. This leads to a strong economy, resilient society and sustainable environment for the benefit of all Australians. This includes supporting Australia's transition to a low emissions economy, strong resources and agriculture sectors, and economic opportunities and social benefits for Australia's regional and remote communities. The Exploring for the Future program, which commenced in 2016, is an eight year, $225m investment by the Australian Government.</div>

Green steel, produced using renewable energy and hydrogen, presents a promising avenue to decarbonize steel manufacturing and expand the hydrogen industry. Australia, endowed with abundant renewable resources and iron ore deposits, is ideally placed to support this global effort. This paper's two-step analytical approach offers the first comprehensive assessment of Australia's potential to develop green steel as a value-added export commodity. The Economic Fairways modelling reveals a strong alignment between prospective hydrogen hubs and current and future iron ore operations, enabling shared infrastructure development and first-mover advantages. By employing a site-based system optimization that integrates both wind and solar power sources, the cost of producing green steel could decrease significantly to around AU$900 per tonne by 2030 and AU$750 per tonne by 2050. Moreover, replacing 1% of global steel production would require 35 GW of well-optimized wind and solar photovoltaics, 16 GW of hydrogen electrolysers, and 1000 square kilometres of land. Sensitivity analysis further indicates that iron ore prices would exert a long-term influence on green steel prices. Overall, this study highlights the opportunities and challenges facing the Australian iron ore industry in contributing to the decarbonization of the global steel sector, underscoring the crucial role of government support in driving the growth and development of the green steel industry. <b>Citation:</b> Wang C et al., Green steel: Synergies between the Australian iron ore industry and the production of green hydrogen, <i>International Journal of Hydrogen Energy,</i> Volume 48, Issue 81, 1 October 2023, Pages 32277-32293, ISSN 0360-3199. https://doi.org/10.1016/j.ijhydene.2023.05.041

<div>The energy and resources industries are two essential pillars of Australia’s economy and vital sectors in the global transition to a sustainable and net-zero economy. To enhance Australia’s competitiveness, there is an urgent need to explore technical and strategic challenges and opportunities to unlock domestic hydrogen and green steel development pathways that are suitable for the Australian resources and manufacturing ecosystem. </div><div><br></div><div>Held on 30 August 2023 in Perth, Western Australia, this workshop provided Australian stakeholders in the hydrogen, iron ore and government sectors a forum to share, discuss and provide insight on a broad range of aspects relevant to hydrogen and green steel development opportunities across Australia—including identifying investment hurdles, technical challenges and knowledge gaps, and fostering new innovation and collaboration opportunities.</div><div><br></div><div>As part of the Exploring for the Future program, Geoscience Australia, in collaboration with Monash University, premiered its Green Steel Economic Fairways tool, which utilises geoscience knowledge and data to highlight regional opportunities of high economic potential for hydrogen and green steel industries in Australia.</div><div><br></div><div>The recording of the workshop presentations is available on YouTube.</div>